(e) Compute the optimal debt haircut (i.e. percent reduction in face value) that maxi mizes the value of debt q1(D)D for foreign investors. Now suppose that the original level of debt D1 was held equally by N investors, i.e. each of the investors holds debt worth % in face value. Suppose a debt haircut as calculated in (e) is proposed to every individual investor. (f) Compute the value of debt for an individual investor that decides to participate in the haircut if all remaining investors also decide to participate. Compute the value of debt for the same investor if he decides not to participate in the haircut when all others decide to participate. For which N will an individual investor prefer to participate in the haircut if all other investors are participating